Top 10 Small-Cap Stocks Raking in Big Profits

11 June 20246 mins read by Angel One

Discover top small-cap stocks with strong profits: Satin Creditcare, Mishtann Foods, Electrotherm, MAS Financial, Jayaswal Neco.

Top 10 Small-Cap Stocks Raking in Big Profits

Investing in small-cap stocks can be a roller-coaster ride, but the rewards can be significant for those who identify the right opportunities. While large-cap stocks often get the limelight, small-cap stocks can offer substantial returns, especially when they demonstrate strong profitability. In this blog, we will delve into the small-cap stocks that have posted the highest profits over the past 12 months.

Methodology

These companies have been selected based on their net profit figures while ensuring that other income is not a significant contributor to their net profits, providing a clearer picture of their core profitability. The stocks discussed here have a market capitalization between Rs. 100 crore and Rs. 5000 crore.

Here are the top performers based on net profit:

#	Name	CMP Rs.	P/E	Mar Cap Rs.Cr.	5Yrs return %	3Yrs return %	NP 12M Rs.Cr.	Other Income Rs.Cr.
1	Satin Creditcare	218.65	5.55	2,424.33	-6	36.33	435.94	7.74
2	Mishtann Foods	15.63	4.83	1,661.20	-9.92	81.63	346.03	0.06
3	Electrotherm(I)	637.3	2.55	811.06	18.98	69.48	317.33	4.65
4	MAS FINANC SER	291.25	18.97	4,761.77	7.59	-1.8	254.01	6.52
5	Jayaswal Neco	42.6	18.58	4,155.83	56.22	27.81	209.98	-0.41
6	Nirlon	417.7	18.31	3,764.32	15.72	11.15	205.56	4.24
7	Jamna Auto Inds.	117.05	22.69	4,659.28	15.53	13.19	205.41	4.01
8	Epigral	1193.95	25.36	4,966.70	NA	NA	195.79	6.52
9	SMC Global Sec.	160.5	9	1,684.72	NA	25.36	188.28	2.54
10	Kuantum Papers	140.35	6.64	1,222.05	26.51	25.93	183.83	5.64

Top 5 companies

Satin Creditcare
Mishtann Foods
Electrotherm (India)
MAS Financial Services
Jayeswal Neco

Let’s take a closer look at each of these companies:

Satin Creditcare Network

Satin Creditcare Network Limited (SCNL) is a microfinance institution with operations in 23 states and 95,000 villages. SCNL offers diverse financial products, including MSME loans, housing finance, and business correspondent services.

Satin Creditcare has shown a robust net profit of Rs. 435.94 crore over the last 12 months, with minimal contribution from other income. Despite a negative 5-year return, its 3-year return is promising at 36.33%, indicating a recent recovery. The low P/E ratio of 5.55 suggests it could be undervalued, presenting a potential opportunity for investors.

Mishtann Foods

Mishtann Foods processes and packages fast-moving consumer goods such as Basmati rice, wheat, pulses, and salt. The company markets unbranded Basmati rice and distributes pulses and salt procured from third parties, supported by 15 super stockists and 70,000+ retailers across 10 states.

Mishtann Foods has achieved a significant net profit of Rs. 346.03 crore, with other income almost negligible. The stock has seen a dramatic 81.63% return over the last three years, despite a 5-year negative return. Its low P/E ratio of 4.83 indicates it might be undervalued, making it a stock to watch.

Electrotherm India Ltd

Electrotherm India Ltd serves the steel and foundry industry, manufacturing induction melting equipment, transformers, steel, ductile iron pipes, battery-operated vehicles, and renewable energy solutions. The company holds a 65% market share in India’s induction melting equipment sector.

Electrotherm (I) has reported a strong net profit of Rs. 317.33 crore, with minimal other income. The stock has delivered solid returns over both 5-year and 3-year periods, at 18.98% and 69.48%, respectively. Its very low P/E ratio of 2.55 suggests a potential undervaluation, making it an attractive option for investors looking for growth opportunities.

MAS Financial Services

MAS Financial Services Limited is a non-deposit-taking NBFC providing retail financing products, including MSME loans, home loans, two-wheeler loans, used car loans, and commercial vehicle loans.

MAS Financial Services has shown a net profit of Rs. 254.01 crore. While the 3-year return is slightly negative, the 5-year return is positive at 7.59%. The P/E ratio of 18.97 is higher compared to others on this list, indicating it might be fairly valued or slightly overvalued. However, its consistent profitability could make it a stable investment choice.

Jayaswal Neco Industries

Jayaswal Neco Industries Limited (JNIL) is a manufacturer of iron and steel castings, billets, rolled products, pig iron, sponge iron, and steel. As the flagship company of NECO Group, JNIL has evolved from a small-scale iron foundry into a major industry player.

Jayaswal Neco has reported a net profit of Rs. 209.98 crore, with negligible other income. It has demonstrated impressive 5-year and 3-year returns of 56.22% and 27.81%, respectively. With a P/E ratio of 18.58, the stock appears reasonably valued, reflecting its strong performance and growth potential.

Conclusion

These small-cap stocks have demonstrated strong profitability and present interesting opportunities for investors. While some have shown significant returns over the past few years, others offer potential undervaluation. Investors should consider these companies based on their individual investment strategies and risk appetite.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.